YZMP, Jiangsu Huahai conclude long-term strategic cooperation agreement

Recently, Jiang Shihong, chairman of Yuchai Zhuhai Marine Power Co., Ltd. (YZMP) has visited Jiangsu Huahai Shipping Group to discuss future market trends and cooperation deepening. Under the principles of reciprocity, mutual benefit and win-win, the both sides concluded a long-term strategic cooperation agreement. 

Jiangsu Huahai is an industrial group engaged in shipping operations, shipbuilding, ship management, crew management and ship R & D. With an own fleet, the company engages in dry and bulk cargo transport on domestic and international routes, and boasts a total operation capacity of 1 million tonnages. Besides, Huahai invested 1.5 billion yuan in establishing Hubei Huahai Ship Heavy Industry Co., Ltd. in Huanggang, Hubei Province, owns a long coastline of 4,000 meters and manufactures 150000DWT ships. In 2011, YZMP inked a deal with Huahai for two+two W6X40 engines to match its new 456000DWT bulk carrier. According to sources, the ship costs a development expense of up to 25 million yuan, uses Wartsila's full-electric-control W6X40 engine, saves about one liter of oil compared to similar products in the market at a speed of 12.5 knots. If 380cst heavy oil is priced 5,000 yuan/t by conservative estimate and the ship operates 250 days per year, a total oil value of 1.25 million yuan can be saved every year. Besides, the ship's building cost is over 10 percent lower than similar models. Huahai was optimistic about the ship's future sales and expected a sales volume of eight to ten in the coming two years. YZMP's conclusion of long-term strategic cooperation agreement with Huahai is exactly intended to cement cooperation with YZMP and consolidate YZMP's market share in this area. 　

(Cao Feng)